I'm back. Just wrapped up my Financial Accounting class (and got an A, somehow). Now it's onto Managerial Accounting. I've got every problem from this week's homework solved except for one:
Kubin Company’s relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:
Amount per Unit
Direct materials $ 7.60
Direct labor $ 4.60
Variable manufacturing overhead $ 2.10
Fixed manufacturing overhead $ 5.60
Fixed selling expense $ 4.10
Fixed administrative expense $ 3.10
Sales commissions $ 1.60
Variable administrative expense $ 1.10
If 15,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
I keep getting $126,700, but that is wrong. I've found similar problems on Brainly and Yahoo Answers, but following their explanations is still leading me to that same answer. What am I missing?
Kubin Company’s relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:
Amount per Unit
Direct materials $ 7.60
Direct labor $ 4.60
Variable manufacturing overhead $ 2.10
Fixed manufacturing overhead $ 5.60
Fixed selling expense $ 4.10
Fixed administrative expense $ 3.10
Sales commissions $ 1.60
Variable administrative expense $ 1.10
If 15,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
I keep getting $126,700, but that is wrong. I've found similar problems on Brainly and Yahoo Answers, but following their explanations is still leading me to that same answer. What am I missing?
via International Skeptics Forum https://ift.tt/2KCzEUa
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